LUM Luminent Mtg Cap

NEW YORK, Aug. 23 /PRNewswire/ -- Dreier LLP (http://www.dreierllp.com/) announces that a class action lawsuit was commenced in the United States District Court for the Northern District of California, on behalf of investors who purchased the common stock of Luminent Mortgage Capital, Inc. ("Luminent" or the "Company") (NYSE:LUM) during the period October 10, 2006 through August 6, 2007, inclusive (the "Class Period"). The complaint alleges violations of the federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934. If you purchased Luminent common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before October 8, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. If you have acquired Luminent common stock and want to discuss your legal rights, please contact Daniel B. Scotti () of Dreier LLP at 800-952-8897. Class members may retain counsel of their choice and move the Court to serve as a lead plaintiff, or may choose to do nothing and remain absent class members. Luminent is a real estate investment trust, which purportedly invests primarily in United States agency and other single-family, adjustable-rate, and fixed rate mortgage-backed securities. The complaint alleges that during the Class Period, defendants misled investors by issuing false and misleading statements regarding the Company's business and financial results. Specifically, the complaint alleges that: (i) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions as well as manipulated facts; (ii) the Company's investments in mortgage loans were not all "high quality" as claimed by defendants, nor was its hedging disciplined and sophisticated as to credit risk; and (iii) the Company was not on track to report the earnings forecast or to pay the dividends promised. In October 2006, Luminent completed an offering of common stock valued at $10.25 per share. On August 6, 2007, after market close, the Company shocked investors by announcing that the secondary market for its mortgage loans and mortgage- backed securities had seized-up, and, as a result, Luminent was experiencing a significant increase in margin calls on its highest quality assets and a decrease on the financing advance rates provided by its lenders. The following day, Luminent's stock dropped $3.30, or 75%, to close at $1.08 per share on extremely heavy trading volume. Dreier LLP's Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP's Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements. Prior results do not guarantee a similar outcome. As of the date of this Notice, Dreier LLP has not filed a complaint against Luminent. Background on Dreier LLP Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and innovative alternative to traditional "large-firm" lawyering. Dreier LLP represents a wide range of institutional, entrepreneurial and individual clients in diverse sectors of financial, industrial and service-oriented markets. The firm's principal practices are commercial litigation, class action litigation, real estate, bankruptcy and corporate reorganization, employment, corporate and securities, entertainment, intellectual property, matrimonial and tax. Dreier LLP's Los Angeles affiliate, Dreier Stein & Kahan LLP, has its principal practice in entertainment and commercial litigation and corporate transactions. The firm's affiliate Schlesinger Gannon & Lazetera LLP has an extensive practice in the area of trusts and estates law. Pitta & Dreier LLP is an affiliate which specializes in labor law, and Pitta, Bishop, Del Giorno & Dreier LLP specializes in government relations. In the 10 years since its founding, Dreier LLP, with its affiliate members, has grown to nearly 200 attorneys, with its principal office at 499 Park Avenue in Manhattan, and additional offices in Los Angeles; Santa Monica, California; Albany, New York; and Stamford, Connecticut. DATASOURCE: Dreier LLP CONTACT: Dreier LLP, 1-800-952-8897, Web site: http://www.dreierllp.com/

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